Circle CEO Jeremy Allaire said Arc will receive a native token for governance and incentives, and will later adopt Proof-of-Stake.

Token purpose and consensus transition

According to Allaire, the planned native token will be used to support network governance and economic incentives for participants.

He also stated that Arc is expected to migrate to a Proof-of-Stake consensus mechanism over time to improve efficiency and security.

Network positioning and intended use cases

Arc is described as a first-layer, EVM-compatible network built with an emphasis on institutional clients and regulated financial activity.

Allaire indicated the chain aims to serve as core infrastructure for payment flows and, in the future, as a platform enabling AI agent integrations.

Development stage and outlook

The project currently operates on a testnet, with the team progressing through validation and preparatory steps before mainnet deployment.

Circle’s announcement frames the token and consensus plans as part of a longer-term roadmap to align network governance with operational incentives.